HBOS trio could face City bans

Three former HBOS directors blamed for the banking group's collapse in a damning report may be banned for life as company directors. Business Secretary Vince Cable has ordered a probe to see if enough evidence can disqualify the trio.

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HBOS story is one of 'catastrophic' failures

Andrew Tyrie, chairman of the commission on banking standards, said: "The HBOS story is one of catastrophic failures of management, governance and regulatory oversight."

He added that regulators also have "a lot of explaining to do". "From 2004 up until the latter part of 2007, the FSA was not so much 'the dog that didn't bark' as 'the dog barking up the wrong tree'," he said.

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HBOS trio 'should apologise for reckless strategy'

In a damning report, the Parliamentary Commission on Banking Standards, says the primary responsibility for the downfall of HBOS "should rest with former chief executive Sir James Crosby" but also heavily criticised the actions of Lord Stevenson and Andy Hornby.

Former HBOS chief executive Sir James Crosby. Credit: Anna Gowthorpe/PA Archive/Press Association Images

The commission said in the report:

"The primary responsibility for the downfall of HBOS should rest with Sir James Crosby, architect of the strategy that set the course for disaster, with Andy Hornby, who proved unable or unwilling to change course, and Lord Stevenson, who presided over the bank's board from its birth to its death."

Lord Stevenson came under heavy fire, having infuriated the commission by claiming reckless lending at HBOS was not his fault because he was "only there part time".It said he had shown himself "incapable of facing the realities of what placed the bank in jeopardy from that time until now".

The commission found the former HBOS bosses also failed to admit their mistakes and should apologise for their "incompetent and reckless board strategy".

HBOS trio slammed over management 'failures'

Bankers who ran HBOS in the run-up to its dramatic collapse are ultimately to blame for "catastrophic failures of management" and should not be allowed to work in the financial sector again, a damning report has said.

The Parliamentary Commission on Banking Standards launched a devastating attack on the bailed-out lender's former chairman Lord Stevenson and past chief executives Sir James Crosby and Andy Hornby.

Bankers who ran HBOS in the run-up to its dramatic collapse are ultimately to blame for its mismanagement, a parliamentary report has said. Credit: Press Assocation

Their "toxic" misjudgments led to the bank's downfall and £20.5 billion taxpayer bail-out at the height of the financial crisis and they should never be allowed to work in the financial sector again, according to the influential commission of MPs and peers.

Peter Cummings is the only former HBOS director to have been penalised by the Financial Services Authority (FSA), after being fined £500,000 and banned for life from working in the City last September.

But the commission said it was wrong that he should shoulder the blame alone and called on the new City regulator to consider barring Sir James, Mr Hornby and Lord Stevenson from taking up any role in the financial sector.

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